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Keen 


REPORT 


FROM  THE 

Committee  of  Ways  and  Means, 


WHO  WERE  INSTRUCTED  TO  ENQUIRE  INTO 

THE  EXPEDIENCY  OF  REPEALING 

THE  LAW’S  LATING  DUTIES 

On  {tills  and  domeftic  diftilled  (pints,  on  refined  fugar, 
licenfes  to  retailers,  fales  at  auction,  pleafurable  car¬ 
riages,  damped  vellum,  parchment  and  paper, 
and  poftage  on  news-papers. 


8 th  March ,  1802. 

Committed  to  a  Committee  of  the  whole  Houfe 

to-morrow. 


PRINTED  BY  ORDER  OF  THE  HOUSE  OF  REPRESENTATIVES. 


^  r 


REPORT,  &c. 


The  Committee  of  Ways  and  Means,  who  were  inftructed 
to  enquire  into  the  expediency  of  repealing  the  laws  laying 
duties  on  (tills  and  domeftic  diftilled  fpirits,  on  refined  fu- 
gars,  licenfes  to  retailers,  fales  at  auficion,  pleafurable  car¬ 
riages,  (tamped  vellum,  parchment  and  paper,  and  poltage 
on  news-papers, 

REPORT— 

T 

JL  H  A  T  the  whole  amount  of  revenue  arif- 
ing  from  thole  duties,  exclufive  of  poltage  on  news¬ 
papers,  as  appears  by  the  (tatements  laid  before  the 
Houle,  by  the  Secretary  of  the  Treafury,  in  the  early 
ftage  of  the  feffion,  did  not  exceed  for  the  year  1800 
925,000  dollars  ;  after  deducting  the  amount  of  draw¬ 
backs  paid  on  the  exportation  of  domeftic  diftiiled 
fpirits  and  refined  fugar  during  that  year :  which 
fum  is  chargeable  with  an  expenfe  of  collection  equal 
to  137,000  dollars,  exclufive  of  the  expenfes  of  the 
offices  of  infpedtors  offurvey,  which  have  been  abolifh- 
ed.  The  nett  revenue  arifing  from  thofe  duties  may, 
therefore,  be  eftimated  at  792,000  dollars :  but  if 
from  this  fum  be  deducted  the  duties  accruing  on 
ftamps,  which,  as  under  -the  exifting  laws  they  will 
ceafe  to  be  collected  after  the  fourth  of  March  next, 
cannot  be  enumerated  among  the  permanent  internal 
duties,  the  whole  nett  revenue  produced  from  thofe 
dudes  may  be  eftimated  at  a  fum  not  exceeding  7 10,000 
dollars,  chargeable  with  an  expenfe  of  collection  equal 
to  120,000  dollars.  To  produce,  therefore,  into  the 
treafury  fomewhat  lefs  than  600,000  dollars,  an  ex- 


[  4  3 


penfe  mud  be  incurred  more  than  equal  to  a  fifth  of 
that  fum  ;  and  upwards  of  four  hundred  revenue  offi¬ 
cers,  exclufive  of  the  infpectors,  mud  be  maintained 
at  the  public  charge.  The  continuance  of  a  revenue 
drawn  from  the  people  on  fuch  terms,  can,  in  the  opi¬ 
nion  of  your  committee,  be  judified  only  by  an  impe¬ 
rious  neceffity :  a  neceffity  which,  in  their  edimation, 
does  not  at  prefent,  and  is  not,  hereafter,  likely  to  exid. 

Of  the  proceeds  of  thofe  duties  more  than  500,000 
dollars  arife  from  the  tax  on  didillation  ;  372,000  of 
which  are  paid  by  22,000  country  dills,  fcattered  over 
the  immenfe  territory  of  the  United  States :  65,000 
other  dollars  are  the  product  of  13,000  retailer’s  li- 
cenfes.  Thefe  fads  demondrate  the  difficulty,  and 
even  the  impoffibility,  of  materially  leffening  the  ex- 
penfes  of  colle&ion,  fo  long  as  the  fubjects  from  which 
the  revenue  is  to  be  drawn,  are  fo  thinly  difperfed  over 
this  widely  extended  country  :  and  the  annexed  com¬ 
munication  from  the  commiffioner  of  the  revenue,  will 
explain  the  deficiency  which  is  likely  to  occur  on  the 
mod  productive  branch  of  thofe  duties,  unlefs  provi- 
fions  are  adopted  which,  by  laying  the  tax  on  the 
quantity  actually  diftilled,  will  require  additional  offi¬ 
cers  to  the  augmentation  of  the  prefent  heavy  charges 
of  collection,  and  a  multiplication  of  oaths,  thereby 
leffening  the  fecurity  of  that  fanction  and  endangering 
the  public  morals.  The  abolition  of  one  clafs  of  thefe 
duties,  by  materially  diminiffiing  their  produdt,  with¬ 
out  effecting  in  the  fame  degree  the  expenfe  of  collec¬ 
tion,  would  be  a  drong  additional  argument  for  the 
abrogation  of  all :  and  when  it  is  recollected  that 
fome  of  thofe  which  it  might  be  the  mod  defirable 
to  retain  are,  even  now,  fubjects  of  taxation  in  the 
feveral  dates,  the  committee  perceive  no  fubdantial 
objection  to  releafing  entirely  to  the  dates  objects  of 
revenue  which  to  them  may  be  equally  defirable  and 
produ&ive  j  fince  to  them  the  collection  can  be  attend- 


[  5  3 


ed  with  little  additional  charge,  and  fmce  to  the  fede¬ 
ral  government  exclufively  belongs  the  moll  fruitful 
fource  of  revenue  which  the  union  affords.  A  wife 
policy,  it  is  believed,  will  therefore  induce  the 
United  States  to  abftain,  wherever  practicable,  from 
exercifing  the  right  of  taxation  on  thofe  fubjects 
over  which  the  individual  Hates  poffefs  a  concurrent 
right.  Other  reasons  concur  in  producing  an  opi¬ 
nion  favorable  to  the  repeal  of  thofe  duties.  They 
conliff — 

1.  In  the  vexation  and  oppreffion  of  many  of  them, 
fome  of  which  are  peculiarly  obnoxious  to  our  citizens. 

2.  In  the  nature  of  excife,  which  is  hoftile  to  the 
genius  of  a  free  people. 

3.  In  their  tendency  to  multiply  offices  and  in- 
creafe  the  patronage  of  the  executive.  This  effeCt 
alone  would  forbid  the  retention  of  the  internal  taxes, 
and  a  reduction,  to  an  equal  amount,  of  the  impoft 
on  articles  of  the  firfl  neceffity:  fmce,  by  that  mea- 
fure,  not  one  of  the  holt  of  officers  employed  in  their 
collection  would  be  reduced. 

None  of  the  foregoing  confiderations,  however, 
could  have  induced  your  committee  to  recommend  a 
repeal  of  thefe  taxes,  was  it  apprehended  that,  by  the 
meafure,  the  punctual  compliance  with  the  public  en¬ 
gagements  could  be  endangered.  But  believing  addi¬ 
tional  taxes  to  be  unneceffary  for  defraying  the  annual 
charges  of  government,  at  the  prelent  rate  of  expen- 
dituje,  they  conceive  that  a  redu&ion  of  chat  expen¬ 
diture  wall  juftify  a  proportionate  reduction  of  the 
public  burthens.  A  contrary  doCtrine  would  imply 
an  urgent  neceffity  for  an  increafe  of  the  exifting 
taxes,  fhould  no  retrenchment  be  made  in  the  perma¬ 
nent  public  expenditure.  By  the  annexed  letter  of 
the  Secretary  at  War  it  will  appear  that  a  fum  exceed¬ 
ing  400,000  dollars  will  be  faved  on  the  army  alone. 
By  the  eftimate  of  the  Secretary  of  the  Navy  the  ex- 


C  6  ] 


penditure  for  the  current  year  is  eftimated  at  20c, ooq 
dollars  lefs  than  that  of  the  year  1801.  Of  this  fum 
not  more  than  fix  hundred  thoufand  dollars  are  appli¬ 
cable  to  objects  of  permanent  expenfe.  It  follows, 
therefore,  that  a  fum  exceeding  the  whole  amount  of 
the  internal  duties  will  be  faved  in  the  permanent  ex¬ 
penditure  of  thofe  two  departments  alone;  even 
fhould  future  circumftances  compel  us  to  keep  up  our 
armament  in  the  Mediterranean. 

On  the  fubjedl  of  the  poftage  on  newfpapers,  the 
committee  are  of  opinion  that  it  would  be  unadvifable 
to  take  off  that  tax,  inafmuch  as  it  is  infignificant  in, 
amount,  and  is  the  means  of  infuring  the  iafe  delivery 
of  newfpapers  to  their  refpe&ive  fubfcribers. 

From  thefe  various  confiderations,  the  committee 
refpe&fully  fubmit  the  following  bill  to  repeal  the  laws 
laying  duties  on  Hills  and  domeftic  diftilled  fpirits ;  on 
refined  fugar ;  licenfes  to  retailers  ;  fales  at  audlion  ; 
pleafurable  carriages;  and  ftamped  vellum,  parch- 
ment  and  paper. 


SIR, 


TREASURY  DEPARTMENT, 

March  2,  1802. 


In  the  report  fubmitted  by  this  department 
to  Congrefs,  on  the  18th  of  December  lad,  a  refer¬ 
ence  was  made,  on  the  fubjed  of  the  internal  reve¬ 
nues,  to  the  annual  report  of  the  commiffioner  of  the 
revenue,  which  was  not  then  completed,  but  was  tranf- 
mitted  to  the  Houfe  on  the  21ft  of  the  fame  month. 
A  datement  marked  (M)  was,  however,  annexed  to 
the  report  of  the  1 8th  December,  purporting  to  be  an 
abdrad  of  the  commiffioner’s  report.  Having  difco- 
vered  an  error  in  that  flatement,  I  now  beg  leave  to 
redify  it. 

The  expenfes  of  colledion  of  the  permanent  internal 
duties  are  there  dated,  for  the  year  1800,  at  139,500 
dollars  and  61  cents,  and  thofe  of  the  damp  duties  at 
10,849  dollars  and  38  cents  ;  indead  of  which  the  ex¬ 
penfes  of  colledion  of  all  the  internal  duties,  includ¬ 
ing  damps,  ought  to  have  been  dated  at  139,500  dol¬ 
lars  and  6 1  cents,  and  thofe  of  the  permanent  duties  at 
only  128,651  dollars  and  23  cents. 

I  will  take  this  opportunity  of  obferving,  id,  That 
thofe  expenfes  include  only  the  grofs  emoluments  of 
the  fupervifors  and  other  fubordinate  officers  employ¬ 
ed  in  the  colledion  of  the  duties,  but  embrace  neither 
the  falaries  of  the  commiffioner  of  the  revenue,  fuper- 
intendent  of  damps,  clerks  and  dampers,  nor  the  ex- 
penfe  of  purchafing  paper  for  damps :  2dly,  That  the 
drawbacks  on  exported  fpirits  feem  to  have  been  edi- 
mated  too  low  in  the  datement  (M)  for  the  year  1  800, 
by  afum  of  about  6000  dollars  ;  and  3dly,  That  that 
datement  being  made  for  the  year  1800,  no  notice 
was  there  taken  of  the  faving  refulting  from  the  fup- 


C  3  ] 


preffion  of  eighteen  infpe&ors  effe&ed  lad  fummer  by 
the  Prefident.  The  grols  emoluments  of  thole  eigh¬ 
teen  infpe&ors  amounted,  for  the  year  1  Boo,  to  dolls. 
19,823  36,  but  as,  on  account  of  that  arrangement, 
fome  extra  allowances  to  fome  of  the  fupervilors  and 
collectors  may  be  neceffary,  the  actual  faving  may  not 
be  eftimated  at  more  than  15,000  dollars.  The  cor¬ 
rected  eltimate  of  the  expenfe  of  collection  of  the  in¬ 
ternal  duties,  herein  enclofed,  will  ffiow  that  the  ex- 
penfes  of  collection  on  the  permanent  duties  ought  to 
have  been  dated,  for  the  year  180c,  at  about  19  per 
cent,  and  thole  on  all  the  internal  duties,  damps  in¬ 
cluded,  for  the  fame  year,  at  about  1 6t  percent  ;  but 
that,  if  the  offices  of  infpeCtors,  lately  luppreffed,  had 
been  aboliffied  at  that  time,  thofe  expenles  would  have 
been  reduced  for  that  year  to  17  per  cent,  on  the  per¬ 
manent  duties,  and  to  15  per  cent,  on  all  the  internal 
duties,  damps  included  ;  which  lad  calculation  may 
be  confidered  as  the  true  rate  of  the  expenfes  of  collec¬ 
tion  at  the  prefent  time. 

About  three  fifths  of  thofe  expenfes  confid  of  fala- 
ries,  allowances  for  clerks,  and  other  expenditures 
equally  applicable  to  all  the  different  fpecies  of  duties. 
The  remaining  two  fifths  confid  of  commiffions  which 
do  not  vary  more  than  one  per  cent,  between  one  fpe¬ 
cies  of  duties  and  another.  The  lowed  nominal  commif- 
fion  is  that  allowed  in  Maffachufetts  and  Rhode-bland 
on  fpirits  diddled  from  foreign  materials,  and  amounts 
only  to  5  per  cent;  but  as  it  is  paid  onthe  whole  amount 
diddled,  that  is  to  fay,  as  wed  on  the  quantity  export¬ 
ed  and  which  pays  no  duty,  as  to  that  actually  con- 
fumed  and  liable  to  duty,  the  real  commiffion  on  the 
amount  paying  duty  is  not  lefs  than  7-  per  cent,  fex- 
clufively  of  the  general  charge  of  falaries,  &c.)  The 
commiffion  on  duties  upon  country  dills  is  alfo  7 i  per 
cent,  that  on  the  four  other  permanent  duties  6i  per 
cent.  Thefe  are  exclufively  of  the  commiffions  here¬ 
tofore  allowed  to  the  infpe&ors  now  aboliffied. 


£  9  ] 


Whether  the  expenfes  of  collection  may  not  be  di- 
minifhed  even  beyond  what  has  been  effected  by  the 
order  of  the  Prefident  of  lad  fummer,  it  would  be,  per¬ 
haps,  rafh  to  affert ;  but  1  have  no  hefitarion  in  faying 
that  they  can  but  be  increafed  in  proportion  to  the 
amount  received,  if  fome  fpecies  of  duties  fhall  be 
abolifhed  and  fome  retained.  The  only  exception  is 
perhaps  the  damp  duty,  which  may  be  colleded  with¬ 
out  the  affidance  of  almoft  any  other  officers  than 
venders  of  damps,  to  whom  the  allowance  of  ten  per 
cent,  now  made  by  law,  would  be  fufficient. 

I  have  the  honor  to  be. 

Very  refpe&fully. 

Sir, 

Your  obedient  fervant, 
ALBERT  GALLATIN. 

Hon.  John  Randolph,  Efq. 

Chairman  of  the  Committee 
of  Ways  and  Means. 


Corrected  eft  mate  of  the  expenfes  of  collection  of  the  in¬ 
ternal  duties . 

Permanent  duties  (damps  excluded,) 

Grofs  amount  of  1800,  -  772,959  12 

DeduCl  drawbacks ,  viz . 

On  562,556  gallons  fpirits 
exported,  -  56,255  60 

On  refined  fugar, 
eftimated  -  5,882  93 

- 62,138  53 

Nett  amount,  .  - - 710,820  59 


B 


t  IO  ] 

Expenfes  of  collection  per 

ftatement  (M)  -  -  139,500  61 

DeduCt  miflake  now  rectifi¬ 
ed,  -  -  -  10,849  38 

128,651  23 

Add  expenfes  of  commiffi- 

oner  of  revenue’s  office,  -  6,600 


Total,  -  -  135,251  23 


Which  135,251  dollars,  on  the  nett  amount  of 
710,820  dolls,  makes  the  expenfe  a  little  more  than 
19  per  cent. 

But  if  the  faving  refulting  from  having  aboliffied 
the  offices  of  infpeCtion  be  taken  into  confideration, 
the  refult  will  be  as  follows  : 

Total  expenfes  per  above,  135,251  23 
Deduct- — the  total  emolu¬ 
ments  of  the  aboliffied  in- 
fpeCtors  for  1800  was, 

19,823  36 

But  extra  allow¬ 
ances  neceffiary, 
eflimated,  -  4,823  36 

- . - .  15,000 

Total,  -  120,251  23 


Which  1 20,251  23,  on  the  nett  amount  of  710,820 
dollars,  makes  the  expenfe  fomewhat  lefs  than  1 7  per 
cent. 


c  »  : 


All  the  duties,  (damps  included,) 

Grois  amount  in  1800,  -  993,661  82 

Deduct,  drawbacks  per 
above  -  -  62,138  53 

Purchafeof  paper 
for  (lamps,  6, coo 

- 68,138  53 

Nett  amount,  -  -  -  925,523  29 

Expenfes  of  collection  as  per 
datement  Mj  rectified,  1395500  61 
Add,  expenfes  of  commiffi- 
oner  of  revenue’s  of¬ 
fice,  -  6,600 

Do.  of  fuperintend. 
of  (lamps,  (count, 
dampers  included^  6,400 

- -  1 3,000 

— - 152,500  61 

Which  152,500  6r,  on  thenett  amt.  of  925,^:23  29, 
makes  the  expenfe  a  little  lefs  than  1 6\  per  cent. 

But  if  the  faving  refulting  from  the  infpeCtors  be¬ 
ing  abolifhed  be  taken  into  confideration. 

Deducting  from  the  ex¬ 
penfes,  viz.  -  -  152,500  61 

The  above  dated  faving,  15,000 

Leaves  for  total  expenfes,  -  -  i37?5oo  61 


Which  137,500  61,  on  the  nett  amt.  of  925,523  29, 
makes  the  expenfe  a  little  lefs  than  1 5  per  cent. 


SIR, 


Treasury  Department, 

Revenue  OJficey  December  2,  1801. 


OR  your  information  I  enclofe  fundry 
communications  which  have  palled  between  the  fuper- 
vifcr  of  Penniyivania  and  myfelf,  on  the  iubjed  of 
improvements  in  the  diHiliing  bufmefs,  which  have 
been  recently  introduced  by  perfons  reft  ding  in  Lan¬ 
caster  county,  The  notes  which  are  attached  to  the 
drawings  will  fully  explain  the  application  of  the  ma¬ 
chinery,  which  is  laid  to  be  conformable  to  colonel 
Anderion’s  patent. 

I  do  not  find  that  any  confiderable  improvement  in 
the  form  of  the  (till  itielf  has  been  attempted,  the 
hvad  ar.d  parts  conneded  therewith  are  materially 
changed,  and  the  alterations  are  calculated  to  anfwer 
very  valuable  purpofes  to  the  diftiller.  By  means  of 
the  half  globe,  which  is  conneded  with  the  Hill-head 
by  a  pipe  of  four  inches  diameter,  the  capacity  of 
the  Hill  is  evidently  augmented  about  one  third,  for 
which  the  diftiller  prefumes  that  he  is  not  chargeable 
with  duly;  by  giving  the  Hearn  room  to  afcend,  the 
procefs  may  be  greatly  accelerated  without  the  rifque 
of  boiling  over  and  injuring  the  quality  of  the  fpirit. 

The  immerfion  of  the  half-globe  (or  condenfor,  as  it 
is  called)  in  the  mafhing-tub,  for  the  purpofe  of  heat¬ 
ing  the  wall),  faves  much  time,  as  it  would  be  imprac¬ 
ticable  to  bring  a  Hill  to  boil,  in  the  ordinary  way,  in 
lels  than  ha?f  an  hour. 

As  there  is  no  unufual  waHe  of  material,  nor  an 
increafed  confumption  of  fuel,  di (Tillers  muH  be  great 
gainers  by  the  new  mode,  provided  they  are  eHablilhed 
in  a  plentiful  country,  or  where  they  meet  with  few 
impediments  in  obtaining  luppiies  of  grain.  Under 


[  r3  ] 

thofe  advantages  I  confider  the  following  as  nearly  a 
corred  refult  of  the  bufinefs,  as  it  relates  to  the  prefent 
excife  fyftem. 

C.  Gaffman’s  diftillery,  confiding  of  two  dills,  viz. 
107  gallons, 

54  do.  lor  doubling. 

1 61  gallons  at  54  cents  per  an.  is  dolls.  86  94  cents. 


Thefe  flills  produce  at  prefent  from  50  to  54  gal¬ 
lons  of  fpirit  per  diem,  if  employed  three  hundred 
working  days  in  the  year,  at  50  gallons  each,  is  15,000 
gallons  at  T5_  of  one  cent  per  gallon  of  fpirit,  90  dol¬ 
lars. 

I  am,  with  refped, 

Your  obedient  fervant, 

WILLIAM  MILLER, 

Commiffioner  of  the  Revenue. 


The  honourable 

Secretary  of  the  Treasury. 


SIR, 


Philadelphia, 

O Bober  26,  180 1. 


I  am  honored  with  your  favor  of  the 
17th  inflant,  relative  to  printed  damps.  The  induc¬ 
tions  contained  in  it  lhall  be  dridly  attended  to. 

My  weekly  return,  which  I  enclofe,  will  fhewwhat 
cafh  I  have  on  hand,  depofited  in  the  banks.  I  fhould 
have  palled  it  to  the  credit  of  the  Treafurer  of  the 
United  States  lafl  wreek,  but  I  expeded  Mr.  Duane 
v7ould  have  called  on  me  for  the  fum  I  was  directed  to 
pay  him.  I  prefume  his  engagements  in  the  circuit 


[  '4  ] 

court  have  hitherto  prevented  him  from  attending  to 
this  bufmefs. 

The  enclofed  letter  from  Mr.  GraefF,  I  bee  leave  to 
tranfmit  to  you.  If  the  fubjed  fhould  be  thought  to 
be  of  fufficient  confequence  it  will  perhaps  be  necefFary 
to  lay  it  before  the  honorable  Secretary.  I  have  writ¬ 
ten  to  Mr.  GraefF,  and  requeded  him  to  furnifh  me 
with  every  necefFary  information  on  the  fubjed. 

I  am,  very  refpedfully, 
srR, 

Your  mod  obedient  fervant, 

P.  MUHLENBERG. 

William  Miller,  Efq. 

CommifFioner  of  the  Revenue, 


Lancaster, 

October  1 6,  1801. 


It  is  my  duty,  as  a  collector  of  the  revenue 
of  this  county,  to  give  every  information  refpedmg 
the  new  patent  diddling  invention  of  Mr.  Alexander 
Anderfon  :  there  are  now  in  this  county  upwards  of  30 
diftilleries ;  they  are  getting  into  York  county  and 
Franklin;  they  can  run  their  dills  from  12  to  14  times 
in  twenty-four  hours,  where  the  others  run  theirs  but 
three  or  four  times,  and  fave  wood  by  it,  and  pay  no 
more  duty  than  before  :  there  are  a  great  many  didil- 
lers  complaining,  thofe  patent  didillers  are  generally 
wealthy  people  and  able  to  lay  in  a  dock  of  grain  ;  by 
that  means  it  injures  thofe  didillers  that  make  their 
livelihood  by  it.  It  will  injure  the  revenue  in  this  coun¬ 
ty  for  this  year  from  three  to  four  thoufand  dollars.  If 


[  *5  1 


you  fhould  think  proper  to  lay  it  before  Congrefs  at 
the  next  feffion,  I  will  furnilh  you  with  every  particu¬ 
lar  in  what  way  this  machinery  is  conftructed,  and  in. 
what  manner  it  operates. 

I  am,  fir,  with  refpe£t. 

Your  humble  fervant, 

JACOB  GRAEFF, 

Colledor , 

Gen.  Peter  Muhlenberg. 


Letter  written  on  the  io th  November  1801,  to  P .  Muh - 

lenberg ,  Efq . 

“I  HAVE  received  collector  GraefPs  com¬ 
munication  of  the  1 6th  ult.  In  order  that  no  time  may 
be  loll  in  afcertaining  whether  the  diftillers  alluded  to 
polfel's  the  advantages  which  have  been  afcribed  to 
them ;  let  the  collector  of  Lancafter  county  vifit  one 
or  more  of  the  diftilleries,  and  obtain  an  accurate  de- 
fcription  of  fuch  (tills  as  are  now  in  ufe.  Having  taken 
the  dimenfions  of  the  ftill,  its  head,  worm,  and  other 
appendages,  let  him  attend  to  the  procefs,  examine  its 
contents  and  rote  the  number  of  difcharges  and  quan¬ 
tity  of  fpirits  produced  in  a  given  time.  To  convey 
his  ideas  more  completely,  let  a  drawing  of  the  ftill  and 
all  the  implements  which  are  ufed  in  diftillation  be 
made  out  and  tranfmitted  with  fuch  obfervations  as 
occur  during  the  examination. ” 

“  If  practicable,  in  the  courfe  of  an  experiment  of 
this  kind  it  may  be  well  to  difcover,  whether  the  waft- 
age  of  materials  and  fuel  is  lefs  cr  more,  than  when 
the  bunnels  is  conducted  in  the  ufual  way.  When 
your  information  upon  thefe  points  is  complete  I  hope 
to  be  favored  with  an  anfwer.” 

(Signed) 

“  WILLIAM  MILLER.” 


[  16  ] 


SIR, 


Philadelphia, 

November  27,  1801. 


JEiNCLOSED,  I  have  the  honor  to  tranf- 
mit  a  letter  I  have  jull  received  from  Mr.  GraefF,  col- 
ledor  of  the  revenue  for  Lancafter  county,  together 
with  a  drawing  of  the  ftill  and  the  colledor's  obferva- 
tions. 

I  am  very  refpedfully, 

SIR, 

Your  mod  obedient  fervant. 


P.  MUHLENBERG. 


SIR, 


Lancaster, 

November  24,  1801. 


I  RECEIVED  vour  favour  of  the  21ft 

j 

ultimo,  in  anfwer  to  my  communications  of  the  16th, 
relative  to  patent  diftilleries,  wherein  you  requeft  me 
to  furniih  you  with  all  the  information  I  can  obtain  ; 
alfo,  your  favour  of  the  17th  inftant,  requefting  me 
to  pay  immediate  attention  to  a  copy  of  a  letter  from 
William  Miller,  commiftioner  of  the  revenue,  dated 
the  i  cth,  on  the  operation  of  Anderfon’s  parent  ftills, 
to  which  I  now  inclofe  you  the  drawing  of  the  ftill 
and  the  manner  in  which  it  operates :  the  disadvan¬ 
tages  that  arife  from  thefe  ftills,  in  this  county  are, 
that  there  are  a  great  many  furnaces  and  forges,  and 
a  great  number  of  horfes  that  confume  a  great  deal  of 
grain  ;  the  diftillers  who  have  thefe  ftills  are  generally 
wealthy,  and  buy  up  the  grain  in  great  quantities, 
which  prevent  thofe  diftillers,  who  diftill  in  the  com- 


C  17  ] 


mon  way,  from  entering  their  {tills.  The  advantages 
are  fo  great,  that  they  can  afford  to  give  more  for  the 
rye  than  the  common  diftiller,  and  yet  get  the  fame 
price  for  their  whifkey  :  there  are  a  number  of  poor 
people  who  make  their  livelihood  by  diftilling,  and  on 
account  of  the  grain  are  obliged  to  quit. 

I  am,  fir,  with  refped. 

Your  humble  fervant, 

JACOB  GRAEFF, 

Collector. 


Gen.  Peter  Muhlenberg, 
Super  vilor. 


SIR, 


Treasury  Department, 
January  6,  1802. 


I  have  the  honor  to  enclofe,  for  the 
information  ot  the  commit! ee  of  ways  and  means,  a 
copy  of  an  order  of  the  Prefident  of  the  United 
States,  abolifhing  fundry  offices  of  infpedors  of  the 
internal  revenue,  and  erecting  a  new  diftrid,  to  in¬ 
clude  the  two  territories  of  Indiana  and  north-weft  of 
the  river  Ohio.  Heretofore  thofe  have,  as  a  diftind 
furvey,  made  part  of  the  fame  diftrid,  which  in¬ 
cluded  the  ftate  of  Kentucky,  and  been  under  the 
fuperintendance  of  the  fupervifor  refiding  in  that  ftate. 

That  arrangement,  made  whilft  the  population 
of  thofe  two  territories  was  fo  inconfiderable  that 
hardly  any  revenue  could  be  derived  from  them,  al¬ 
though  always  incompetent  to  the  complete  execution 
of  the  revenue  laws,  had  now,  on  account  of  the 


C 


[  18  ] 


great  increafe  -of  population,  become  extremely  in¬ 
convenient  in  pradice. 

The  laws  which  have  authorized  the  Prefident  to 
erect  new  diftrids,  not  giving  him,  fince  the  ad  of 
i  ith  July,  1798,  the  power  of  fixing  the  compenfa- 
tion  of  officers  employed  in  the  colledion  of  the  in¬ 
ternal  revenues,  it  remains  with  Congrefs  to  deter¬ 
mine  whether  any,  and  if  any,  what  compenfation 
fhall  be  allowed  to  the  fupervifor  of  that  dittrid.  It 
is  of  fome  importance  that  this  fhould  be  afcertained, 
as,  in  the  mean  while,  the  duties  of  fupervifor  are 
done  by  an  infpedor,  who,  under  exifting  laws,  has 
no  power  to  fill  the  vacancies  in  the  offices  of  collec¬ 
tors. 

I  have  honor  to  be. 

Very  refpedfully, 

SIR, 

Your  obedient  fervant, 

albert  Gallatin. 

The  honorable 

Jv)hn  Randolph,  junior. 

Chairman  of  the  Commit¬ 
tee  of  Ways  and  Means. 


An  ORDER  of  the  Prefident  of  the  United  States ,  mak¬ 
ing  certain  alterations  in  the  diftrids  therein  mentioned , 
and  ending  a  new  revenue  dijlrid ,  to  be  denominated 
“  The  north -we ft  diftrid” 

Sed.  1.  IN  purfuance  of  divers  ads  of  the  Con¬ 
grefs  of  the  United  States,  vetting  in  me  certain  pow¬ 
ers  and  authorities  in  relation  to  the  internal  revenues 
thereof,  the  following  alterations  of,  and  additions 
to,  the  arrangements  heretofore  made  for  fecuring  and 
colleding  the  laid  duties,  are  hereby  adopted  and  etta- 
blifhed. 


[  i9  ] 


Sect.  2.  The  diftricts  of  MafTachufetts,  Pennfylva- 
nia,  Maryland,  North  Carolina,  and  South-Carolina, 
fhall,  from  and  after  the  thirtieth  day  of  September 
next,  feverally  form,  each  one  furvey ;  and  the  duties  of 
infpedtor  of  each  of  faid  furveys  (hall  be  performed  by 
the  fupervifor  of  the  diftridt  comprehending  the  fame. 

Sect.  3.  The  feveral  counties  of  the  diftridt  of 
Virginia,  originally  and  heretofore  contained  within, 
and  forming  the  firlt,  fecond,  third  and  fourth  furveys 
of  the  faid  diftrict,  (hall,  from  and  after  the  thirtieth 
day  of  September  next,  be  contained  in,  and  form 
but  one  furvey,  (to  be  thereafter  denominated  the 
firft  ; )  and  the  duties  of  infpedtor  in  and  for  the  fame 
fhall  be  performed  by  the  fupervifor  of  the  faid  diftridt. 

Sedt.  4.  The  fecond  furvey  of  the  diftrict  of  Ohio, 
according  to  its  prefent  limits,  heretofore  eftabliffied 
by  the  Prefident  of  the  United  States,  fhall  be  and  is 
hereby  erected  into  an  entire  new  diftridt,  to  be  de¬ 
nominated  “  the  north-weft  diftridt  •/’  and  the  faid 
diftridt  fhall  confift  of  one  furvey,  and  may,  from 
time  to  time,  be  divided  into  fuch  and  fo  many  divi- 
fions  as,  by  the  fupervifor  thereof,  fhall  be  found  ex¬ 
pedient  and  neceflary. 

Sedt.  5.  The  collectors  of  revenue  in  the  diftricts 
of  MafTachufetts,  Pennfylvania,  Maryland,  North-Ca- 
rolina,  and  South-Carolina,  and  in  the  firft,  fecond, 
third  and  fourth  furveys  of  the  diftridt  of  Virginia,  fhall 
render  their  accounts  of  duties,  arifing  from  and  after 
the  f hiriieth  day  of  June  laft,  and  pay  over  the  mo¬ 
nies  arifing  from  the  fame  to  the  refpedtive  fupervifors 
of  the  faid  diftricts. 

Given  under  my  hand  at  the  city  of  Wafhington, 
on  the  twenty-ninth  day  of  July,  one  thoufand 
eight  hundred  and  one. 

TH.  JEFFERSON. 

A  true  copy  of  the  original,  on  file  in  this  office. 

WILLIAM  MILLER, 

Revenue  Office, 

December  30,  1801. 


I 


C  20  ] 


SIR, 


January  27,  1802. 


-AlG REE  ABLY  to  the  requeft  of  the 
Committee  of  Ways  and  Means,  I  have  calculated  the 
relative  expenfe  neceffary  for  the  fupport  of  the  pre- 
fent  military  eftablifhment,  and  the  propofed  peace 
eifablifhment,  and  find  the  difference  very  little  more 
or  iefs  than  five  hundred  thoufand  dollars  annually. 

I  am,  fir,  with  real  refped, 

Your  humble  fervant, 

H.  DEARBORN. 

Mr.  John  Randolph. 


ESTIMATE  of  the  sum  requisite  for  the  naval 

SERVICE  FOR  THE  YEAR  l8o2. 

Annual  expenfe  of  a  Frigate  of  44  guns . 

Pay  of  the  officers,  -  -  16,068 

Subfiflence  of  ditto,  -  -  1,82  c 

- 17,893 

Pay  of  the  feamen, 

1 20  able  feamen  at  12  dolls.  17,280 
142  ordinary  do.  8  do.  13,632 

30  boys,  -  6  do.  2,160 

- 33,072 

Provifions,  -  31,400 

Medicine,  inffruments,  hofpital  ftores,  1,250 
Contingent  expenfes,  -  16,000 


Dollars ,  99,615 


C  21  ] 

Frigate  of  36  guns. 

Pay  of  the  officers,  -  .  1 5,636 

Subfiftence  of  do.  -  -  1,82c 

-  17,461 

Pay  of  the  feamen, 

100  able  -  at  12  dolls.  14,400 
107  ordinary  at  8  do.  10,272 
30  boys,  -  at  6  do.  2,160 

- 26,832 

Provifions,  -  26,737 

Medicine,  inftruments,  hofpital  ftores,  1,150 

Contingent  expenfes,  -  -  -  -  12,800 

Dollars ,  84,980 


Annual  expenfe  of  a  Frigate  of  32  guns . 

Pay  of  the  officers,  -  -  13.668 

Subfiftence  of  do.  -  -  -  1 ,606 

- *5>27  4 

Pay  of  the  feamen, 

60  able  feamen  at  12  dolls.  8,640 
73  ordinary  do.  8  do.  7,008 
30  boys,  -  -  6  do.  2,160 

- 17,808 

Provifions,  -  -  -  -  20,463  74 

Medicine,  inftruments,  hofpital  ftores,  1,150 
Contingent  expenfes,  -  -  -  11,200 

Dollars ,  65,895  74 


Frigate  of  32  guns ,  f mailer. 

Pay  of  the  officers,  -  -  12,528 

Subfiftence  of  do.  -  -  -  1,533 


14,061 


C  3*  ] 


Pay  of  the  feamen, 

60  able  do.  at  12  dolls.  8,640 
57  ordinary  do.  8  do.  5,472 
30  boys,  -  6  do.  2,160 

- 16,272 

Provifions,  .....  17,322  28 

Medicine,  inftruments,  hofpital  ftores,  1,000 
Contingencies,  t  -  -  -  1 0,000 

Dollars ,  58,655  28 


Annual  expenfe  of  a  Schooner  12  to  14  guns* 

Pay  of  the  officers,  -  -  4,728 

Subftftence  of  do.  -  -  949 

- 55677 

Pay  of  the  feamen, 

20  able  do.  at  12  dolls.  2,880 
14  ordinary  do.  8  do.  1,344 

10  boys,  -  6  do.  720 

- 4,944 

Provifions, . 5,530  69 

Medicine,  inftruments,  hofpital  ftores,  500 

Contingent  expenfes,  ...  5,ooo 

Dollars ,  21,651  69 


Frigate  of  44  or  36  laid  up  in  or  dinary. 
Pay  of  the  officers,  -  -  1,416 

Subfiftence  of  do.  -  -  292 

- 1,708 

Pay  of  the  feamen, 

12  at  12  dolls,  per  month,  -  -  1,728 

Provifions,  -----  1,898 

Contingent  expenfes,  -  1,000 

j  1 

Dollars ,  6,334 


[  23  3 


Annual  expenfe  of  a 

Frigate  of  32  guns. 

laid  up  in 

ordinary. 

•  ■ 

Pay  of  the  officers, 

-  -  1,41 6 

Subfiff ence  of  do.  - 

-  292 

•  1,708 

Pay  of  the  feamen, 

m  m  m 

1,440 

Provifions, 

0  m  m  m 

75 2 

Contingent  expenfes. 

- 

-  1 ,000 

Dollars  3 

»  5>9°° 

Half  pay  to  officers  not  in  adlual  ftrvice. 

3  Captains,  - 

.  at  dolls.  50 

1,800 

1 1  Lieutenants,  - 

-  do.  20 

2,640 

60  Midffiipmen,  - 

-  do.  9  50 

6,840 

3  Surgeons, 

do.  25 

900 

3  Purlers, 

-  do.  20 

720 

Dollars ,  12,900 


18,600  40 
144 

*  5’5  *  9  23 
1,224  60 


Annual  expenfe  of  the  marine  corps. 

Pay,  -  -  ^  #  -  53>OI° 

Subfiftence,  provifions  for  the  men  in¬ 
cluded,  - 
Forage,  - 

Clothing,  - 
Military  ftores,  - 
Contingent  expenfes,  comprifing  quar¬ 
ters  for  the  officers  and  barracks  for 
the  men  at  different  Rations,  officers 
travelling  expenfes,  tranfportation, 
quarter-mafter’s  ftores,  camp  utenfils, 
hofpitalftores,  ftationary,  fuel,  pottage, 
ftraw,  bedbunks,  armourers,  carpen¬ 
ter’s  bills,  &c.  &c.  -  -  -  10,611 


Dollars ,  99,109  23 


C  24  ] 


GENERAL  estimate  of  the  sum  requisite  for  the 

NAVAL  SERVICE  FOR  THE  YEAR  l8o2. 

For  the  maintenance  of  2  frigates  of  44 
guns,  in  a&ual  fervice,  199,230 
1  ditto  of  36  guns,  -  -  84,980 

1  ditto  of  32  do.  -  -  65,895 

1  fchooner  of  12  do.  21,651 

37*5756 

Add  one  third  the  expenfe 
of  the  frigates,  for  the 
operation  of  relieving,  as 
it  is  prefumed  it  will  take 
4  months  to  complete  it, 
and  for  the  relieved  fqua- 
dron  to  return  and  pay  off 
the  crews,  during  which 
period  there  will  be  2iqua- 
drons  on  full  expenfe,  on- 
lv  one  of  which  however 

j 

will  have  a  lchooner,  -  116,702 

- 488,458 

Frigates  laid  up  in  ordinary, 

4  of  44  to  36  guns,  -  25,336 

3  of  32  guns,  -  -  17,700 

43>°36 

From  which  deduct  1  of  44 
and  1  of  32,  whilfl:  reliev¬ 
ing  the  fquadron  in  actu¬ 
al  fervice,  fay  4  months,  4,078 

- — ; -  38>958 

Half  pay  to  officers  not  in  a&ive  iervice,  1 2,900 

Marine  corps,  -  -  -  99,109 

Carried  forward ,  639,425 


I 


[  25  ] 


Brought  forward^  639,425 

Compensation  to  navy  agents,  Superin¬ 
tendents,  clerks,  and  ftorekeepers,  20,000 
Procuring  materials  for  74  gun  (hips,  190,575 
Improvement  of  navy-yards,  docks,  and 

wharves,  -  ...  50,000 

Dollars ,  900,000 


RECAPITULATION. 

Veflels  in  a&ual  Service,  -  •  -  488,458 

Ditto  laid  up  in  ordinary,  -  -  38,95 8 

Half  pay  to  officers  not  in  a£hial  Service,  1 2,900 
IViarine  corps,  -  -  -  99,109 

Compensation  to  navy  agents,  Superin¬ 
tendents,  clerks  and  ftorekeepers,  20,000 


659,425 

Procuring  materials  for  74 

gun  (hips,  -  -  19 °>575 

Improvement  of  navy-yards, 

docks,  and  wharves,  -  50,000 

- 240,575 

Dollars ,  900,000 

Navy  Department, 

January  30,  1802. 

ROBERT  SMITH. 


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